Flat Tax versus Fair Tax

Nearly 50% of Americans pay NO taxes and many of them get a "refund." It's hard to believe anyone would think that the poor are getting shafted when the top 5% pay 43% of all of the taxes. A flat tax must truly be flat. Just like we are encouraged to tithe 10% we should be taxed at the same percent. Obviously the more a person makes the more they pay.

But the best option is not the flat tax but the fair tax. This completely replaces the IRS as we know it. Instead of paying a payroll tax of any kind there is a national sales tax on consumption. There have been a lot of studies and proponents of this. Check out Steve Forbes' opinions on this. Everyone would pay this tax: citizens whether rich or poor, illegal aliens, visitors or guests to this country. The cool thing is that some models have it worked into the current pricing structure so you will not actually see an increase at the store. That's complex and I'm not going to explain it here. The bottom line is that it doesn't matter if the person inherited their money or earned there money or stole their money, whenever they purchase anything they pay the tax. This is my first choice and unlikely to ever pass. My second choice is the flat tax as long as it is FLAT and not progressive. Even Russia figured this one out.